In this article, we discuss the 5 best utility stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to the 15 Best Utility Stocks to Invest In.
5. Chesapeake Utilities Corporation (NYSE: CPK)
Number of Hedge Fund Holders: 42
Chesapeake Utilities Corporation (NYSE:CPK) ranks 5th on the 15 best utility stocks to invest in. The diversified energy firm based in Delaware distributes natural gas and propane gas. Chesapeake Utilities Corporation (NYSE:CPK) has over 60,000 customers in Delaware and Maryland.
In 2020, Chesapeake Utilities Corporation (NYSE:CPK) acquired Western Natural Gas Company, enabling the company to expand its operations to Florida. Shares of CPK jumped 45% in the last 12 months.
On May 6th, Maxim analyst Tate Sullivan raised Chesapeake Utilities Corporation’s (NYSE:CPK) price target to $135 from $121 and ket its Buy rating on the stock.
The company has a market cap of $2.14 billion. In the first quarter of 2021, Chesapeake Utilities Corporation (NYSE:CPK) had an EPS of $1.96, beating estimates of $1.83. In the first quarter, the company’s revenue was $191.19 million, beating revenue estimates by $7.56 million.
At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $1.82 billion in Chesapeake Utilities Corporation (NYSE:CPK).
4. Vistra Corp. (NYSE: VST)
Number of Hedge Fund Holders: 46
Vistra Corp. (NYSE:VST) ranks 4th on the 15 best utility stocks to invest in. The Texas-based energy company markets wholesale energy, commodity risk management, and retail sales of electricity to end-users. Vistra Corp. (NYSE:VST) has over 5 million customers worldwide.
Vistra Corp. (NYSE:VST) has soared 12% in the last three months. Guggenheim analyst Shahriar Pourreza upgraded the stock to a Buy rating from a Neutral with a $24 price target. The analyst mentioned that recent favorable data points in both policy and commodities had developed confidence in the company’s total free cash flow generation.
The company has a market cap of $9.21 billion and offers a dividend yield of 3.14%. In the first quarter of 2021, Vistra Corp. (NYSE:VST) had an EPS of $1.96, beating estimates of $1.83. The company’s first-quarter revenue came in at $191.19 million, beating revenue estimates of $183.63 million. Shares of Vistra Corp. (NYSE:VST) increased 4% in the last twelve months.
There were 47 hedge funds that reported owning stakes in Vistra Corp. (NYSE:VST) at the end of the first quarter. The total value of these stakes at the end of Q1 is $1.25 billion.
3. The AES Corporation (NYSE: AES)
Number of Hedge Fund Holders: 51
The AES Corporation (NYSE:AES) ranks 3rd on the 15 best utility stocks to invest in. The New Virginia-based energy company generates electrical power in over 15 countries. The company was founded in 1981 and was formerly known as Applied Energy Services, Inc.
Earlier this year, the company announced its agreement with Alphabet Inc. (NASDAQ:GOOGL) to supply Google’s Vigirina venters with carbon-free energy. The stock jumped 2% year to date. On June 21st, Susquehanna analyst Biju Perincheril initiated coverage on the stock with a Positive rating and a $32 price target.
The company has a market cap of $15.99 billion and offers a dividend yield of 2.51%. In the first quarter of 2021, The AES Corporation (NYSE:AES) had an EPS of $0.28, missing estimates by $0.02. However, the company’s first-quarter revenue was $2.64 billion, beating revenue estimates by $0.27 billion. Shares of AES jumped 57% over the last twelve months.
There were 51 hedge funds that reported owning stakes in The AES Corporation (NYSE:AES) at the end of the first quarter. The total value of these stakes at the end of Q1 is $1.54 billion.
2. FirstEnergy Corp. (NYSE: FE)
Number of Hedge Fund Holders: 51
FirstEnergy Corp. (NYSE:FE) ranks 2nd on the 15 best utility stocks to invest in. The Ohio-based electric utility company distributes, transmits, and generates electricity through its subsidiaries. FirstEnergy Corp. (NYSE:FE) has over 6 million customers located in Ohio, Pennsylvania, West Virginia, Maryland, and New Jersey.
In April, the company agreed to pay $230 million and meet other conditions in exchange for prosecutors not proceeding with a criminal case against its central role in a bribery scheme. Shares of FirstEnergy Corp. (NYSE:FE) rose 5% in the last three months.
On June 27th, KeyBanc analyst Sophie Karp maintained an Overweight rating on FirstEnergy Corp. (NYSE:FE) with a price target of $42 per share. According to the analyst, FirstEnergy Corp. (NYSE:FE) the $230 million penalty agreement between the company and DOH is a “significant positive”.
The company has a market cap of $21.09 billion and offers a dividend yield of 4.02%. The company’s first-quarter EPS was $0.69, beating consensus estimates by $0.01. FirstEnergy Corp. (NYSE:FE) reported GAAP earnings in the first quarter of 2021 were consistent with $335 million, increasing from $74 million in the same period of 2020. Shares of FirstEnergy Corp. (NYSE:FE) increased 32% year to date.
By the end of the first quarter of 2021, 51 hedge funds out of the 866 tracked by Insider Monkey held stakes in FirstEnergy Corp. (NYSE:FE), worth roughly $1.8 billion.
1. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 63
Topping the 15 best utility stocks to invest in is American energy company NextEra Energy, Inc. (NYSE:NEE). The Florida-based energy giant engages in building energy infrastructure and the development of renewable energy. NextEra Energy, Inc. (NYSE:NEE) is one of the best utility stocks to invest in over 5 million customer accounts, accounting for 10 million people.
In April, Barclays analyst Eric Beaumont raised NextEra Energy, Inc.’s (NYSE:NEE) price target to $82 from $78 and kept its Equal Weight rating, highlighting the company’s leadership position in the industry. NextEra Energy, Inc. (NYSE:NEE) was also assumed coverage by Credit Suisse analyst with an Outperform rating and an $85 price target. The stock has gained 10% in the last twelve months. Shares of ARAY also increased 2% in the last month.
The company has a market cap of $150 billion and currently offers a dividend yield of 2.00%. In the first quarter of 2021, NextEra Energy, Inc. (NYSE:NEE) had an EPS of $0.67, beating estimates by $0.08. The company’s first-quarter revenue was $4.61 billion, missing consensus estimates of $4.86 billion. However, the company is well-positioned and projecting an adjusted EPS range of $2.55-$2.75 and $2.77-$2.97 for 2022-2023.
At the end of the first quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $2.72 billion in NextEra Energy, Inc. (NYSE:NEE).
You can also take a peek at the 10 Best Finance Stocks that Pay Dividends and 10 Best Low Float Stocks to Buy Now.
